State Act

Kerala Co-operative Societies Act 1969

56.Disposal of net profit.-(1)A society shall, out of its net profits in any year,- (a)transfer an amount not being less than fifteen per cent of the net profits to the reserve fund; and (b)credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Co-operative Education Fund referred to in clause (xix) of sub-section (2) of section 109. 45[45a[45f[(c) Ten percent of the net profit to the Co-operative Member Relief Fund as may be prescribed.]]] (2)The balance of the net profits may be utilized for all or any of the following purposes, namely:- (a)payment of dividends to members on their paid up share capital at such rate not exceeding 45b[45g[twenty five]] per cent as may be prescribed; (b)payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws; 45c[(c) seven percent of the net profit to Agricultural Credit Stabilization Fund; (cc)five percentage of net profit to the Professional Education Fund maintained by the Registrar.] (d)donations of amounts not exceeding ten percent of the net profits for any charitable purpose as defined in section (2) of the Charitable Endowments Act, 1890(Central Act 6 of 1890); and 45d[(e)balance of net profit may be utilized for any or all of the purposes specified in the bye-laws of the societies except for payment of bonus to employees]. 45e[(3)Notwithstanding anything contained in section 18 of the Act, in the case of 46a [Kerala State Co-operative Bank] the term ‘member’ shall include nominal and associate members, for the purpose of clause (a) of sub - section (2)].